Solution ,I agree that the language of this question could have beeen better OR more clear in stating the facts of the question.

Now if someone starts from home, which is in the East AND reaches a crossing - on the left should be South, straight ahead should be West, which implies that the theatre should be in South and Hospital should be in the West. The university should be right from the crossing which is NorthAnswer option A

In the morning the Sun should be in the East and the shadow of any person should fall towards the West. There fore SUN is towards the right of Varun and West towards his left. This implies that Varun shoould be facing North ;Therefore Sunil should be facing South.

C=3 add 2 => you get 5; count 5 from C and you get HL=12 add 2 => you get14; count 14 from L and you get ZA=1 add 2 => you get3 ; count 3 from A and you get DS=19 add 2 => you get21 ; count 21 from S and you get N

Once this code has been understood - you can easily identify that NEGLECT stands for DLPZLHP i.e. "b"